There Will Be Blood -Hard War Before Hyperbitcoinization
Published June 9, 2023, Last edited September 23, 2023
Executive Summary
There will be no hyperbitcoinization for this generation. Monetary policy is planned globally. Globalists will not permit a monetary system to arise that is independent of their control. The majority of the Bitcoin mining hash rate will be regulated. Corporate miners will be required to censor transactions. Monetary freedom, like all freedoms, must be forcefully demanded by the people who want it.
“Power concedes nothing without a demand. It never did and it never will. Find out just what any people will quietly submit to and you have found out the exact measure of injustice and wrong which will be imposed upon them, and these will continue till they are resisted with either words or blows or with both.” Fredrick Douglass, U.S. Abolitionist and former slave, West India Emancipation” speech at Canandaigua, New York, August 3, 1857
Neither the people nor our elected representatives determine the policies implemented by our governments. It is the extremely wealthy who determine the policies of nations. The extremely wealthy plan globally. They plan to regulate all cryptocurrencies, including Bitcoin.
The common meme that Bitcoin cannot be stopped is thoughtless. The means to control all Bitcoin globally is well known by both governments and serious students of Bitcoin, -control the majority of the hash rate. Governments have no need to acquire their own hash rate to control Bitcoin. They can jointly regulate the corporate majority of the existing hash rate, and thereby control the entire blockchain. Bitcoin mining has increasingly centralized under the administration of Bitcoin mining corporations. The reach of the government is sufficient to control Bitcoin mining corporations and their hash rate. No government-owned ASICs are necessary.
Though it is true that Government control of the Bitcoin main chain is almost certain to cause Bitcoin advocates to create new Forks of Bitcoin (changes to the Bitcoin code}. Each new fork will be smaller, and less secure, and most or all forks outside of Government control will be made illegal to use. Forking Bitcoin into small illegal subgroups is not a path to HyperBitcoinization nor to an independent monetary system.
This article promotes realism, not pessimism. The Bitcoin idea of removing money from the control of the government will prevail eventually. Humanity is destined to have monetary freedom because an honest, open, independent monetary system, is better than one controlled by the government. However, honest money requires an honest government. The better idea of an open monetary system can be realized only by people who control their governments.
Changing a dishonest government requires revolt. Either we, the people of the world, or our descendants, forcibly restore the government of the people -or we will endure servitude until the ever-worsening corruption collapses the government. Righting our governments will not be quick. Revolutions occur only when the suffering becomes too great to endure.
“All experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed.” U.S. Founders, Declaration of Independence from Great Britain July 4, 1776
Either way, whether we suffer under corrupt governments until they collapse, or we forcibly revolt, neither an honest government nor an honest monetary system will exist in our lifetime. It took five centuries for Rome to crumble after Caesar brought the armies of Rome across the Rubicon River to install himself as dictator of the republic.
”A slave is one who waits for someone to come and free him.”
Ezra Pound Selected Prose: 1909–1965. United States: New Directions Publications, Page 354.
End of Summary
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Article
Bitcoin May Be Peaceful, Governments Are Not
Bitcoin is indeed a peaceful revolution. The use of Bitcoin is entirely voluntary. The ‘legend’[1] of Bitcoin is that it was created to be a better monetary system than government-controlled currencies. Humanity is destined to eventually have a monetary system independent of government, Bitcoin is leading the way. It is probable that Bitcoin has started a long-term revolution in money. However, the government is force, and the governments of today are the enemy of Bitcoin. The centralization of Bitcoin mining under government-authorized corporations makes Bitcoin susceptible to government control.
Those of us who want the freedom to choose Bitcoin as an independent money will have to act. We will need to fight for the right to choose our money.
“Bitcoin is not secured by blockchains, hash power, validation, decentralization, cryptography, open source or game theory — it is secured by people. Technology is never the root of system security. Technology is a tool to help people secure what they value. Security requires people to act. (Emphasis Added) … Bitcoin is a tool, not magic.”
Eric Voskuil, Risk Sharing Principle, in CryptoEconomics: Fundamental Principles of Bitcoin,
HyperBitcoinization
Hyperbitcoinization is the process of Bitcoin becoming the default value system of the world.
“… a voluntary transition from an inferior currency to a superior one, and its adoption is a series of individual acts of entrepreneurship rather than a single monopolist that games the system.”
Daniel Krawisz, Director of Research at Satoshi Nakamoto Institute, (2014)
Hyperbitcoinization requires free market choice. Governments inevitably seek control. Today, the people who control the highest levers of global power have obtained their position and privilege through corrupt means. Removing the corrupt from the control of the government will require force. The corrupt do not willingly yield their power.
“There is a global war on cash going on. Surveillance, control, confiscation, and negative interest rates. … Bitcoin is going to represent in many of these countries, a direct affront to sovereignty. And when sovereigns see a direct challenge to their rule, to their decisions -as arbitrary, capricious and unilateral as they may be, as unconcerned with the consent of the governed[as] they may be, -they will apply full force in order to fight that threat.”
… “They will tell you that by encouraging people to use Bitcoin, we are traitors to our nation. We are criminals, thugs, drug dealers and terrorists. … These currency wars are wars on populations. … There is no greater terrorism than creating a war against your people by deliberately disrupting the very lifeblood of an economy.
Andreas Antonopoulos, ‘The Currency Wars and Bitcoin’s Neutrality: We Didn’t Start the Fire’ Coinscrum, hosted by Imperial College in London, England. At Minute 13:18 & 19:25 (December 3, 2016)
Governments plan to internationally regulate all cryptocurrencies including Bitcoin. Those who don’t comply with the government’s ‘reasonable regulations’, will be villainized. Governments intend to control money including the Bitcoin network.
Governments Will Control Bitcoin
All governments trend towards consolidating their power and increasing control over their people. Control of the monetary system is essential to controlling people. Governments will attempt to control Bitcoin because the rise of an independent monetary system interferes with their control.
“The government is the threat, … they will crack down because they have the ability to do it.” Ron Paul, Speaking about Bitcoin. April 4, 2021
Public education systems promote the idea that our world is governed by independent nation-states. However, the individuals who direct governmental policies today do so globally. The extremely wealthy plan and promote global policies through non-government organizations (WEF, WTO, G-20, Bilderberg, WorldBank, IMF, BIS).
Globalist Non-Government Organizations have published their intent to create and control the world’s monetary systems. See particularly, Pathways to the Regulation of Crypto-Assets: A Global Approach White Paper May 2023. A World Economic Forum publication describing “the case for a global approach to crypto-asset regulation”.
Globalists have named the systems they will use to control global monetary flows; Aurum a retail Central Bank Digital Currency (CBDC), IceBreaker a Bank for International Settlements (BIS) hub for connecting national CBDCs, Marianna an Automated Market (DeFI) for digital Foreign Currency Exchange). In Europe, regulation of crypto-currencies has begun. The European Union has implemented new anti-money laundering (AML) rules for cryptocurrencies, created rules for token issuance, banned algorithmic stablecoins, and created strict rules for asset-backed stablecoins). The U.S. will soon have its own restrictive regulation of Bitcoin and other cryptocurrencies.
“We haven’t suggested outright banning of crypto activities, but it is critical to put in place a strong regulatory framework,” “We’re working with other governments.” Janet Yellen, U.S. Treasury Secretary at G-20 Feb. 2023. U.S. Restrict Act
Regulation will increase rapidly. It will be coordinated globally. Statutes and regulations limiting the public use of cryptocurrencies are coming.
“I’m going to be speaking about the imminent effort to … criminalize Bitcoin and financial privacy. While many of these efforts are taking place at the international level, they intimately involve powerful American Federal agencies … Late last month a bipartisan group of U.S. (legislators) introduced the Financial Technology Protection Act, which would create a working group studying how …criminals … might use cryptocurrencies … and create proposals for … regulatory agencies aimed at countering these (criminal) uses. … Bitcoiners should pay close attention to these developments as the Department of Justice, in particular, has attempted to paint Bitcoin as the payment of choice for well-known terror groups … signaling that this working group, proposed by this Bill, will likely seek to specifically target Bitcoin. Many of the groups looking to combat cybercrime in the U.S. and beyond, including the Dept of Justice and the FBI, are part of an international public private partnership, housed within the World Economic forum. … This group and its partner organizations are also seeking policy objectives that if widely implemented would treat anonymous (private) cryptocurrency transactions … as criminal.”
Whitney Webb, ‘Bitcoin and the Plot to Destroy Financial Privacy’ — Open Source Stage — Bitcoin 2023 Miami, Open Source Stage, Bitcoin Magazine at minutes 0:21–3:15 May 19, 2023
When regulation becomes destructive, there will be no appeal to reason. Those who have obtained power through corrupt means care little for public opinion. Demonstrations will not change their policies, and we cannot vote them out of power. The corrupt do not yield their illicit power in the political process. They buy, extort, and kill politicians. Changing the policies of corrupt rulers requires either that the people forcefully regain control of their governments, -or suffer as corruption worsens into collapse.
“You don’t need an investment strategy: you need a war strategy because this is a war. . . You cannot do business with criminals, in particular, criminals who are above the law …”
Catherine Austin Fitts, Publisher of The Solari Report, Financial Expert, Interview with Greg Hunter, ‘USA Watchdog.com’, Posted (June 3, 2023)
“Who would be free, themselves must strike the blow.” … “If there is no struggle, there is no progress. Those who profess to favor freedom and yet deprecate agitation are men who want crops without plowing up the ground; they want rain without thunder and lightning. They want the ocean without the awful roar of its many waters, …” Frederick Douglass, U.S. Abolitionist, former Slave, “West India Emancipation” speech at Canandaigua, New York August 3, 1857.
A government control of Bitcoin has been foretold by some of the world’s most astute investors.[2] Governments intend to prevent the adoption of any independent monetary system.
“The value of Bitcoin over its alternatives derives directly from removing the state from control over both monetary supply and transaction censorship”.
Eric Voskuil, describing Bitcoin’s ‘Value Proposition’, in CryptoEconomics: Fundamental Principles of BitcoinThe International Plan To Control All Bitcoin Transactions
Mining -The Means To Control All Bitcoin Transactions
Bitcoiners have so often repeated the meme ‘Bitcoin is unstoppable’, that many believe it. The meme is clearly false. There is a well-recognized method to control all Bitcoin transactions. To control Bitcoin, governments need to direct the majority of the Bitcoin mining hash rate. Regulation of the majority of the Bitcoin hash rate is within the ability of a group of governments.
“An attacker in control of the majority of the network’s hash rate is capable of manipulating the system at will, i.e., executing double spending attacks, prohibiting transactions from entering the blockchain, and effectively rewriting the transaction history within computational limits.”
Introduction: ‘A Deep Dive into Bitcoin Mining Pools an Empirical Analysis of Mining” (Romiti, Judmayer, Zamyatin, & Haslhofer,) Cooperative Research; Austria Institute of Technology, SBA Research, & Imperial College of London May 2019
Multiple nations will coordinate their regulations to require the majority of Bitcoin miners to censor which transactions are included in the blocks of transactions they mine. This method to control Bitcoin has been studied at universities with government funding[2].
“Energy-related regulation may push some hash rate outside of the U.S., whereas (the White House, National Security Council’s Director of Cyber Security) would rather see more of it in the U.S. so that they can force miners to censor the network on the base layer. She also views international cooperation as a necessary component for successful censorship. … -It’s not just about telling miners not to mine certain transactions, but to not even build atop blocks that have non-compliant transactions so that those transactions don’t get anywhere in the chain. A 51% attack, in other words.
(Lynn Alden, Economic Analyst commenting on a presentation by Carole House, former Director of Cyber Security, White House, National Security Council (April 13, 2023) At minutes 28 & 37- 43
“So, I think we’re on a collision course. … They know how extreme this is. And … it’s not just censoring [transactions], but of censoring you from mining on top of a chain that has it [a censored transaction] deeper. Right? Because if it’s just censoring [transactions, the censored transaction] will get in from miners elsewhere. But if they say you can’t mine on top of a chain that has this transaction in it, then it is effectively saying that you can’t mine Bitcoin in the U.S. And it’s a disaster scenario. … It’s on the calendar. I don’t know when, but maybe like 2030 or something. They’re just going to do that. And I think we should, … we have to prepare for it -politically, legally, and technically.”
Troy Cross @ min 43:00 to 43:52 What Bitcoin Did #668: Live in Miami — Bitcoin Mining with Troy Cross and Harry Sudock, June 8, 2023https://www.youtube.com/watch?v=5Y8yAjgSHho @ min 43:00 https://www.whatbitcoindid.com/podcast/wbd-live-in-miami-bitcoin-mining @min 45:30
The danger of centralized Bitcoin mining and the threat to the network from government regulation has also been discussed by multiple Bitcoin advocates[3]. The regulations required to control Bitcoin are on the agenda of government advisors.
“As part of its enforcement efforts, the Office of Foreign Asset Controls (OFAC) publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific. Collectively, such individuals and companies are called “Specially Designated Nationals” or ‘SDNs.’ Their assets are blocked and U.S. persons are generally prohibited from dealing with them.”
The Restrict Act is an example of laws being proposed to control all cryptocurrencies. The Restrict Act would make it unlawful to participate in, aid, or even discuss (conspire to) participation in any transaction prohibited by the U.S. government. The proposed penalty for violating this new law is severe, up to 20 years in prison and a fine of up to $1,000,000.00 for each unlawful act.
How Governments Can Control Bitcoin -No New ASICs Required
On the surface, controlling the majority of Bitcoin’s hash rate can appear to be a daunting task. Bitcoin’s computer network is immense. An estimated $30 Billion worth of specialized, Application Specific Integrated Circuit (ASIC) computers confirm network transactions 24/7. Tens of thousands of Merchant nodes receive and transmit Bitcoin transactions. The Bitcoin computer network is spread throughout the world. Bitcoin is the world’s largest single-purpose computer network.
However, it is an error to assume that governments would need to create their own ASICs to out-compute the existing Bitcoin network. No new ASICs will be needed to censor all Bitcoin transactions. Governments will simply use their regulatory powers to direct the corporate majority of the Bitcoin mining hash rate, in a manner that forces all transactions through exchanges that enforce Know Your Customer (KYC) and Anti-Money Laundering (AML) rules. Bitcoin mining is increasingly centralized and corporate. Corporations exist by government decree. Compliance with government regulation is a corporate imperative. Corporate miners will comply with government regulations. Multiple Bitcoin advocates have publicized the danger Government regulation poses to centralized Bitcoin mining. [4]
“FATF-GAFI … can implement this rule even faster. Just tell the exchanges “if you want to be connected to the fiat payment network, your Bitcoin nodes can only accept compliant blocks, otherwise you will be laundering money and we will shut you off from the fiat network and send nice SEC agents to your shiny office”. Exchanges are dependent on connectivity to the fiat network because new capital flows through them to the crypto economy… Kraken, Coinbase, Binance,… will gradually start running full nodes with a blacklist. They are using blacklists already, but they only refuse deposits from tainted addresses. I am talking about refusing blocks with tainted transactions. Guess what the miners do? At the end of the month, they need to send the mined coins to an Exchange to get fiat to pay for electricity. …. The miners need to be on the same chain as the exchange, otherwise, they are screwed.”
Juraj Bednar, “How Could Regulators Successfully Introduce Bitcoin Censorship and Other Dystopias” November 12, 2020
Conclusion
Governments will not allow Hyperbitcoinization. The reach of all governments is limited. However, the necessary majority hash rate of the existing Bitcoin mining infrastructure is centralizing. A majority of the Bitcoin mining hash rate is within the reach of international regulators. The reach of the government is sufficient to control Bitcoin corporations and their ASICs.
Governmental regulation of the majority of the Bitcoin mining hash rate will result in censorship (control) of every transaction on the blockchain. Censorship of Bitcoin will not end the Bitcoin idea of removing money from the control of governments. There are a significant number of highly tenacious Bitcoiners who will insist on monetary freedom.
Advocates of monetary freedom will continue to use cryptocurrencies in the black market. Bitcoiners will create multiple new forks of Bitcoin, they will create new and better coins and protocols, and they will use alternative cryptocurrencies. They will create an underground economy.
““[N]o amount of force can control a free man, a man whose mind is free. … [Y]ou can’t conquer a free man; the most you can do is kill him.” Robert Heinlein, If This Goes On (p. 401)
The response of governments to black market currencies and unregulated transactions will become oppressive. The resulting monetary guerrilla warfare will be brutal.
The end result is not in question. The human drive for freedom invariably defeats the need of the few to subjugate their fellow man. Yet, the number of years humanity requires to regain our freedoms is in question. Restoring monetary freedom may take generations. Servitude can last for generations before the avarice of the corrupt leads to their inevitable destruction. It took five centuries for Rome to fall after Caesar crossed the Rubicon River to become dictator of the republic.
In the end, truth overcomes lies, a new dawn arrives and light overcomes darkness. Until then, Bitcoiners and other lovers of freedom will be in a hard war for monetary freedom. Corrupted governments can be changed only by superior force.
“The thing worse than rebellion, is the thing that causes rebellion.” Frederick Douglas
END
Footnotes
[1] Bitcoin’s creation could be an intelligence agency “Legend”
A sophisticated cover that amounts to an entire artificial life history (and supporting documents) to fool even determined counterintelligence professionals.
The U.S. has a history of providing cryptography to the world which the U.S. can access while publicly declaring it to be highly secure. Bitcoin’s Cryptographic Algorithm is a creation of the NSA. American intelligence agencies are also known to manipulate the media. The legend or story of Bitcoin’s secretive origin along with the cultlike promulgation of Bitcoin ‘Maximalism’ may be the intended result of intelligence agency and media manipulation.
[2] Investors Warning that Governments Will Control Bitcoin
@RayDalio, “When I a) put myself in the shoes of government officials, b) see their actions, and c) hear what they say, it is hard for me to imagine that they would allow Bitcoin (or gold) to be an obviously better choice than the money and credit that they are producing. I suspect that Bitcoin’s biggest risk is being successful because if it’s successful, the government will try to kill it and they have a lot of power to succeed.” ‘What I Really Think of Bitcoin’, LinkedIn.com/Pulse January 28, 2021,
Steve Forbes, “… a far bigger storm is brewing, which will rock the worlds of politics, economics, and finance: the attempt by governments and central banks to crush digital currencies with taxes and regulations so that they don’t become alternatives to government money, such as the dollar and the euro. … Politicians and central bankers will fiercely fight to preserve their currency monopolies.” Forbes Newsletter, ‘Bitcoin Warning! Are We Headed For A Cryptocurrency War? February 18, 2021
Michael Burry, “Prepare for inflation. … In an inflationary crisis, governments will move to squash competitors in the currency arena. $BTC #gold … I don’t hate BTC. However, in my view, the long-term future is tenuous for decentralized crypto in a world of legally violent, heartless centralized governments with lifeblood interests in monopolies on currencies. In the short run, anything is possible — why I am not short BTC.” ‘Big Short’ Investor Michael Burry Warns Governments Could ‘Squash’ Bitcoin’ Bitcoin.com quoting Burry Tweets, February 21, 2021
Ricardo Salinas, (Billionaire, Mexico) “The countries that have a central bank. … The central bank is like the holy temple of the bureaucrats. And the high priests of this religion, the fiat religion, live in that temple. And they make a good living off of that religion. And they are not going to let it go. Under any circumstances, they are not going to let go. So it’s rather naïve … to hear people (say) awe there is going to be a (monetary) revolution and then more countries are going to adopt it. …. Things get done because it is in the interests of the guys in power for it to happen or not to happen. And this adoption of Bitcoin is not in the interests of the powerful for it to happen.” BitcoinMagazine, Youtube Interview at minute 23:35 February 3, 2021
Egon von Greyerz, “If Bitcoin and crypto currencies do very well, I do not see governments leaving them alone. They’re not going to let private issuers of digital money take over the money system. Never.” ‘A Long List of Ignored Yet Obvious Risks Ahead’, Video Interview At Min. 46:50, January 22, 2022
[3] Published Studies of Methods to Control the Bitcoin Blockchain
A short selection of government-supported studies regarding how the mining hash rate can be controlled. There are, of course, defenses to some of these attacks. The point is governments use universities. They are well-studied regarding methods to control Bitcoin.
2001 The National Standards Institute published Secure Hashing Algorithm 256 designed by the U.S. National Security Agency (NSA) and later (2008) incorporated into the Bitcoin code by an unknown person, using the pseudonym Satoshi Nakamoto.
In 2011, about two years after the first bitcoins were mined, the CIA invited Gavin Andresen, a lead Bitcoin developer to address the intelligence community about Bitcoin at CIA headquarters.
In 2013, ‘Majority is not Enough: Bitcoin Mining is Vulnerable’ the U.S. Defense Advanced Research Projects Agency https://www.darpa.mil/ funded a study of how to control mining with less than majority hash rate 2013 https://www.cs.cornell.edu/~ie53/publications/btcProcFC.pdf
2014 Game-Theoretic Analysis of DDoS Attacks Against Bitcoin Mining Pools, International Conference on Financial Cryptography and Data Security Abstract Using Distributed Denial of Service Attacks “…we find that … larger mining pools have a greater incentive to attack than smaller ones.” Carnegie Mellon University
2015 ‘The National Security Implications of Virtual Currency, Examining the Potential for Non-state Actor Deployment” “The report urges the government to find technologically advanced ways to exert control over virtual currencies like bitcoin and also implement regulations to curb its adoption among people. The report suggests that the US government should stop not just the terrorist groups, but even individuals, non-profit organizations, alternative financial services for poor, unbanked and underprivileged, etc. from using bitcoin.” RAND
2017 When Cryptocurrencies Mine Their Own Business, How 38% of miners can fork the main chain and take control. National University Singapore
2019 International Conference on Network and System Security New Game-Theoretic Analysis of DDoS Attacks Against Bitcoin Mining Pools with Defense Costs
2020 BDoS: Blockchain Denial-of-Service Discussing how to cause a blockchain to grind to a halt with 21% of hash rate. Mirkin, Pang, Mundt, Eyal, Ittay & Ari. (2020).
2023 March, Operation Choke Point 2.0: The Federal Bank Regulators Come For Crypto, Cooper & Kirk “federal bank regulators, … worked in secret to purge disfavored lines of commerce from the financial system” (Private Analysis, not government funded)
2023 May ‘Remaining regulatory challenges in digital finance and crypto assets after MiCA’ European Parliament
2023 May ‘Pathways to Crypto-Asset Regulation: A Global Approach’ World Economic Forum
2023 June 2, Blockchain Censorship “… [W]e prove a fundamental limitation of … Proof-of-Work (PoW) protocols against censorship resilience.” Vienna University of Economics & Business, Technical University of Munich, The Hebrew University, Imperial College London, Carnegie Mellon University, Khalifa University, University of Surrey, Berkeley Center for Responsible Decentralized Intelligence, University College London
[4] Bitcoiner Publications Regarding How Mining Centralization & Regulation Become Problems for Bitcoin
Peter Todd, “MIT ChainAnchor — Bribing Miners to Regulate Bitcoin” February 2016
Eric Voskuil, Pooling Pressure Risk, CryptoDynamics February 2020
Juraj Bednar, ‘How could regulators successfully introduce Bitcoin censorship and other dystopias’ November 12, 2020
Achim Warner, ‘Yes, Miners can form a cartel and choose to systematically exclude certain persons from this financial system.’ June 30, 2021
Joe Kelly, ‘On Bitcoin’s Fee-Based Security Model — Part 3: Bitcoin vs. The State’ Nov, 21, 2021
Steve Barbour, ‘The State vs Bitcoin’ February 21, 2022
Davido Davido, ‘How Regulation of Bitcoin Mining Results in Complete Government Control of all Bitcoin Globally’ March 21, 2022
Michael Ruiz, Perspectives and solutions regarding Bitcoin Attack Vectors X or Twitter Thread, March 8, 2022
Luke Mikic, Blackrocks secret BTC plan!, Youtube Video
Chis Blec, Bitcoin Adversarial Thinking Youtube discussion with Michael Ruiz
